Coordinating Minister for Economic Affairs, Airlangga Hartarto, has announced that China is poised to invest a substantial IDR 36.4 trillion in the Batang Integrated Industrial Estate (KIT Batang), located in Central Java. This significant capital injection underscores growing economic ties and Indonesia’s strategic appeal for foreign direct investment.
This monumental investment encompasses 16 distinct projects, stemming from a robust cooperation agreement between the Indonesian Government and the Communist Party of China from Fuzhou Province. All these initiatives are strategically aligned under the comprehensive Twin Country Two Parks partnership scheme, signaling a structured approach to bilateral economic development.
Minister Airlangga Hartarto confirmed the agreement during a limited press conference alongside Prabowo at Jakarta’s Merdeka Palace on Thursday, November 27. He stated, “During the meeting with representatives from the Fuzhou Provincial Communist Party of China, a Memorandum of Understanding was signed for 16 projects totaling IDR 36.4 trillion.” This formalizes the ambitious agenda set to transform the industrial landscape.
The diverse array of projects outlined includes the establishment of a one-million-ton capacity steel facility, advanced processing plants for meat and marine products, and key initiatives in nickel iron trade. Furthermore, significant investment will be channeled into research and development projects specifically for high-end textiles and premium products, aiming to boost Indonesia’s value-added manufacturing capabilities.
Beyond these, the cooperation extends to critical sectors such as coal management, ensuring a stable supply of textile raw materials, and fostering growth in the tea and jasmine industries. It also encompasses direct procurement for a wide range of agricultural products, notably including coconut and durian. According to Minister Airlangga, “This initiative is specifically designed to accelerate investment within the Batang Industrial Estate,” highlighting the strategic intent behind this extensive bilateral partnership.
Summary
China is set to invest a substantial IDR 36.4 trillion in Indonesia’s Batang Integrated Industrial Estate (KIT Batang) in Central Java. This significant capital injection encompasses 16 distinct projects, stemming from a cooperation agreement with the Communist Party of China from Fuzhou Province. The initiatives are strategically aligned under the comprehensive “Twin Country Two Parks” partnership scheme, as confirmed by Coordinating Minister Airlangga Hartarto on Thursday, November 27.
The diverse array of projects includes a one-million-ton capacity steel facility, advanced processing plants for meat and marine products, and key initiatives in nickel iron trade. Further investment will be channeled into research and development for high-end textiles, coal management, and direct procurement of agricultural products like coconut and durian. This extensive bilateral partnership is specifically designed to accelerate investment and boost Indonesia’s value-added manufacturing capabilities within the Batang Industrial Estate.
